The Government of South Africa has approved Africa Oil’s acquisition of a 20% participating interest and operatorship of Block 3B / 4B from Azinam.
Situated in the Orange basin in offshore South Africa, Block 3B / 4B covers an area of 17,581km2. It has a maximum water depth of 2,500m.
Africa Oil will assume operatorship for the joint venture (JV) partners Azinam and Ricocure. They will respectively own a 20% and 60% participating interest in the block.
Operators are intending to drill several exploratory wells in the mid-Cretaceous oil play, the location of Block 3B / 4B.
Africa Oil president and CEO Keith Hill said: “Together with our equity interests in Impact Oil and Gas and Africa Energy Corp., Africa Oil has a significant footprint in several emerging plays extending from South Africa to Namibia, where both Total and Shell plan to drill potential play-openers in 2020 and at the same time are increasing their positions in other blocks adjacent to Block 3B/4B.
“From existing 3D seismic surveys, we have identified a number of similar prospects to those that the majors are targeting.
Africa Oil also said that it will participate in a $40m capital raising by Impact Oil and Gas. Impact intends to use these proceeds to fund its interest in high-impact 2020 drilling programmes.
These programmes include drilling the Venus-1 exploration well on block 2913B in offshore Namibia. They also include the drilling of Luiperd-1 well on block 11B/12B in offshore South Africa.
In February 2018, Africa Oil signed agreements to acquire a 25.2% equity interest in Impact Oil and Gas.